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1/4/2012 3:18PM

Obama Appoints CFPB Head Without Senate OK

WSJ's Laura Meckler checks in on Mean Street to discuss President Obama's appointment of Richard Cordray as head of the Consumer Financial Protection Bureau, and the political ramifications of bypassing the Senate's opposition to the move. Photo: Reuters.

This transcript has been automatically generated and may not be 100% accurate.

I ... the ... what's going on here in a speech a fine in Cleveland ... use that opportunity to announce this quote unquote recess appointments but it's the rainy days and off over a sense for him to get away with it ... the the the a technical point that basically the competition gives the president the authority to make the plane as ... well defended it in Greece and ... in art to prevent residents from doing that ... the Senate in recent years has been simply refusing to go into effect in every three days holding up Sir perfunctory pro forma fast and ... where they sort of ... Adelaide open and then immediately dabbling close the DVD were rare and that's about it ... what the White House is saying today is that those are real the ... real action is that that begin and that didn't happen and in a sense they are not available ... to do any of the people business they're not available for their nomination so therefore ... there is a retest for all practical purposes and the president has the authority to make that when the anomaly legal Pierry ... Fairweather will buy for I ... know legally what happened next I mean is this something that the Department of Justice has to pursue the summing files suit in federal court has essentially play itself out ... well what nothing will happen right away either if you want to challenge the big one told that most likely to be one MB companies that are regulated ... by this new agency which is meant to protect on consumers and financial transaction that the company that doesn't like something at the agency died ... but they can deal with and make an aisle seat and stated if they didn't eat director is not legitimate ... because it was he was never properly and for so we're looking at something anything to be of little we found a way the way ... for I have but at its heart this is kind of out ... of ... a political battle with ... the president using this kind of in his election year stop ... the busy say on for the people I'm not on the side of Wall Street like those and Republicans are ... on the no point this guy over Republicans injections I mean it's really about making a statement isn't it ... it yet exactly partly about that and that only about asking him as the protector of the middle class middle Hyatt just now I'm just getting getting but it alacrity very much made this point you're making that he is the one you looking out for you ... and again started ... not only the big bad banks but also that the debate that Republicans don't want this agency to give it more ... for their final uncertain political and how hard it is a legal right to hang on just one turned lower when he and the president right now ... with the speech a fine ... we don't have this feature find that the will come back to it later in the show ... in any case ... if he takes this um ... dollars and the let's say they illegally it's not challenging goes toward what what are the odds of this thing comes to bite the Democrats sometime down the future when they do they control the house or the Senate ... well ... if if if they get their way that that aam and there's no question that this ain't the next president would be the favorite part of the party I mean I mean this is something it and really it lets them up aren't they sharing more of a iam branches of government seal ... the southern side completely reversed when President Bush with an opt in email me at the planted over the objections that Senate Democrats ... so ... it absolutely get to see this play out if he said the sniff test and then ... he will be setting out for future Republican president does not work ... write ... what we expect when ... it's the Senate and House come back into formal session is is given the kind of ... that the battleground point or they can move on to other does and is in the Cana fought in the courts on the side ... well I tell the BN any issue before the Senate the Senate basically that the Republican base that they had that they will not confirm any director to this new agency ... Intel changes I made in the structure of May to see if something Pimco's Richard Cordray Duperreault hire attorney general who is the one he's getting the plane that ... I'm it's not about him that the ... agency and not so ... basically ... the White House if they know that nothing for us to talk about that and I've been there and striking a matter for we played while ... now ... um I think the main concern of a trump card for the moment on the part of the White House and Noble and other things with an open question that with what they see no point in ... the bloggers that are already not exactly an ... fit for human consumption ... I will this poison and further and make it even more difficult for Congress the president to work together and the few remaining think that they get one and try to get the ... final question few more ... in terms of the outcomes of the Iowa caucuses ... have you heard anything out of the White House yet ... is this what they expected today's hearing Mitt Romney Marco Rubio ... had to dig a question mark ... ticket where they basically can adjust to let the thing plan as it will ... I think the most debt Obama supporters and knew that the White House an epic campaign and elsewhere will ... tell you that I'm they believe Mitt Romney is the strongest candidate and then they're being honest though they've been running at the strongest candidate they believe he has a lot ... of made me really haven't gotten to speculate ever bite ... yes ... ALM ... so we do we do we're still ... pretty firmly in the presidential speculation he might even get a few hours ...